BRITAIN had its biggest budget surplus in 17 years last month, as the economy continues to boom following the vote to leave the European Union (EU).

The Government's finances were overall up by £9.4billion in January, while borrowing over the current financial year is at £49.3bn its lowest level since 2008 and £13.6bn lower than the same period last year.

Britain is usually in the black in January, as self-assessment receipts and corporation and capital gains taxes are paid - but this year saw the best start to the year since 2000.

The figures are a huge boost to Philip Hammond ahead of next month's Spring Budget.

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But the country's debt pile now stands at a hefty £1.6 trillion, equivalent to 85.3 per cent of GDP.

The Chancellor has pledged to keep working at balancing the books

A Treasury spokesperson said : “We remain committed to returning the public finances to balance and building on our progress in reducing the deficit from 10 per cent to four per cent of GDP over the last six years.

"Next month the Chancellor will deliver his Spring Budget based on updated forecasts from the OBR.”

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Scott Bowman, UK Economist at Capital Economics, said: "January’s borrowing was actually down on the -£9.1bn from a year earlier, continuing the recent trend of a gradual improvement in the public finances.

"This fall in borrowing was driven by strong receipts growth, with an annual rate of five per cent.

"Looking through some of the monthly volatility, receipts growth has been fairly steady since June – adding to the evidence that the economy has held up well following the vote to leave the EU."